Tax avoidance tactics

First published in Letters by

PEOPLE who publicly vilify multinationals for tax avoidance clearly do not understand the concept of raising state revenue.

It is the duty of joint stock companies to reduce their tax bill in the interests of shareholders and customers. There is no ‘moral’ dynamic in either the raising or paying of taxation. We cannot have some sort of committee making subjective decisions on what they feel a company should pay.

There is either tax law or not. Avoidance is both legal and moral. Evasion is illegal. Politicians can huff and puff, but there is no way around this.

If I ran a multinational in a country which tried a system not commensurate with its own law I would cease to trade in that jurisdiction.

Indeed I would have no option.

Godfrey Bloom, UKIP MEP for Yorkshire and North Lincolnshire.

Comments (4)

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9:22am Thu 6 Dec 12

inthesticks says...

I beg to differ Godfrey, I think there is some immorality involved. Of course morals are not law but a society without morals is a sad and often lawless one, as I believe a lot of laws are based on moral standards.
I think that companies who are making millions or billions in profit, to give to their shareholders but are then avoiding paying appropriately into our tax system are immoral - because the employees (and probably a lot of the shareholders) they have, have been educated using our tax system, they use the NHS when needed and use our police force and all other services which taxes pay for. If there was a fraud discovered in the company, they would call the police, paid for by the taxpayer. The company uses the roads etc to transport it`s goods, etc.
So it`s OK for the workers to have no choice to pay tax to use this system but the company can exploit loopholes that are not available to workers to avoid income tax?
I don`t know how the law could be amended but if it can it should be, but the shaming of companies who will then see a drop in profits seems to have worked so maybe we will keep going down that route. Hit the shareholders and they will suddenly find their `morals`.
I beg to differ Godfrey, I think there is some immorality involved. Of course morals are not law but a society without morals is a sad and often lawless one, as I believe a lot of laws are based on moral standards. I think that companies who are making millions or billions in profit, to give to their shareholders but are then avoiding paying appropriately into our tax system are immoral - because the employees (and probably a lot of the shareholders) they have, have been educated using our tax system, they use the NHS when needed and use our police force and all other services which taxes pay for. If there was a fraud discovered in the company, they would call the police, paid for by the taxpayer. The company uses the roads etc to transport it`s goods, etc. So it`s OK for the workers to have no choice to pay tax to use this system but the company can exploit loopholes that are not available to workers to avoid income tax? I don`t know how the law could be amended but if it can it should be, but the shaming of companies who will then see a drop in profits seems to have worked so maybe we will keep going down that route. Hit the shareholders and they will suddenly find their `morals`. inthesticks
  • Score: 0

10:18am Thu 6 Dec 12

The Great Buda says...

UKIP reveal their true face: "One rule for us; one rule for the hard working people of this land"
UKIP reveal their true face: "One rule for us; one rule for the hard working people of this land" The Great Buda
  • Score: 0

10:48am Thu 6 Dec 12

far2bizzy says...

Let me correct a statement you make - It is the duty of joint stock companies to maximise their profits in the interests of shareholders and customers.

It is the case that certain forms of tax avoidance are looked upon as immoral. If a company’s profits were to be affected by the impression that it was operating immorally then it would not be acting in the best interests of its shareholders.
Let me correct a statement you make - It is the duty of joint stock companies to maximise their profits in the interests of shareholders and customers. It is the case that certain forms of tax avoidance are looked upon as immoral. If a company’s profits were to be affected by the impression that it was operating immorally then it would not be acting in the best interests of its shareholders. far2bizzy
  • Score: 0

3:31pm Fri 7 Dec 12

Sillybillies says...

Tax avoidance such as practised by Starbucks and Amazon is perfectly legal, and it's up to the government to change the law or shut up about it.
Tax avoidance such as practised by Starbucks and Amazon is perfectly legal, and it's up to the government to change the law or shut up about it. Sillybillies
  • Score: 0

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